Rise in tenants seeking help with rent arrears
The charity National Debtline has reported an 84% rise in the number of tenants seeking advice on rent arrears.
The increase has been over the last four years and highlights the problems tenants are having in making ends meet as rents, utilities and the general cost of living rise.
Now, nationwide tenant eviction and referencing firm Landlord Assist is urging landlords to take immediate action if theirtenants default on rent payments. The firm emphasised that most tenants who are unable to pay do not withhold rent willfully, but because they have fallen on hard times.
Graham Kinnear, managing director, said: “The economic situation is really impacting now. We are referencing tenants who are wanting to trade to smaller properties as they are no longer able to afford their rent.“
There are increasing numbers who are being made redundant and increasing numbers who are finding it difficult to meet their rental obligations due to soaring fuel and utility prices.“Landlords should take early action if their tenants default on payments. Arrears situations rarely rectify themselves, and in the current economic climate, landlords need toprotect their interests.“
Although no landlord can predict a tenant falling on hard times, performing credit checks at the start of an agreement can help landlords to assess the tenant’s ability to pay the rent. Landlords should also consider rent guarantee insurance policies to protect their income should a tenant fail to pay on time.”
David Sansome, Managing Director at Sansome & George said: “The situation being reported by the National Debtline is perhaps not unexpected although the picture being painted is certainly much worse than our own experience where arrears and issues remain very low. This is, I am sure, in part due to our geographical location where the downturn in the economy has not impacted as strongly as in other parts of the country but mainly due to our vigilance in ensuring that tenants are appropriately referenced and credit checked before the commencement of the tenancy.”






